Friday, June 23, 2017
A kind of lackluster session to end the week as the Dow lost 2 points on very heavy RUT rebalancing volume. The advance/declines were 2 to 1 positive. The overall market was stronger than the Dow. This should turn the summation index back to sideways. The market has had chances to sell off since Monday and it hasn't happened. We are now looking at a possible SPY call set up on weakness Monday. If we are lower Monday it will trigger a short term buy signal for the S&P 500. It appears my idea for a decent drop here is not going to happen right now. I'll have to recheck the charts this weekend. But it looks like now we will head higher from here. GE was up a couple cents on average volume. Gold found a bid again on a weaker US dollar. The precious metal futures added $7. The XAU gained 1 2/3, while GDX added 3/8. Volume was about average. The short term indicators for the gold shares have turned up and have room to run. ABX broke its short term downtrend line today. It appears that perhaps I've missed the longer term gold share call trade but there is a lot of time to go until October. That said, the volume here hasn't been impressive and perhaps we'll eventually work our way lower here again. That could be wishful thinking. Mentally I'm feeling OK. A pretty uneventful week for stocks as we try to figure out the way from here. We've got the end of the month coming up next week along with a GDP revision. The S&P 500 looks like a potential short term buy here in my view. But I'll have to see how things look this weekend after checking all the indicators. Next week could be the last gasp of real trading for a while as a long holiday weekend is coming up followed by summer. Maybe we'll get one more push to new all time highs in the S&P. Although that weekly negative RSI divergence just doesn't go away. They'll be plenty to ponder in the next couple of days. Asia higher and Europe lower overnight. For now it's Friday afternoon and time for a break.